Exall Energy Corporation reported earnings and production results for the first quarter ended March 31, 2013. For the quarter, the company reported gross revenue of CAD 9,753,000 against CAD 8,604,000 a year ago. Funds from operations were CAD 5,024,000 or CAD 0.04 per diluted share against CAD 4,127,000 or CAD 0.06 per diluted share a year ago. Net income before tax was CAD 1,732,000 or CAD 0.01 per basic and diluted share against CAD 1,529,000 or CAD 0.02 per basic and diluted share a year ago. Net income was CAD 896,000 or CAD 0.01 per basic and diluted share against CAD 1,065,000 or CAD 0.02 per basic and diluted share a year ago. Capital expenditures, net were CAD 6,879,000 against CAD 28,200,000 a year ago. For the quarter, the company reported production of crude oil of 1,218 bbl against 1,004 bbl a year ago. Natural gas liquids were 19 bbl against 15 bbl a year ago. Natural gas was 394 mmcf against 598 mmcf a year ago. Total daily production was 1,303 boe against 1,118 boe a year ago.

Exall Energy Corporation reported earnings and production results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported gross revenue of CAD 8,027,000 against CAD 11,272,000 a year ago. Funds from operations were CAD 3,918,000 or CAD 0.04 per diluted share against CAD 6,175,000 or CAD 0.10 per basic and diluted share a year ago. Net income was CAD 751,000 or CAD 0.01 per basic and diluted share against CAD 2,271,000 or CAD 0.04 per basic and diluted share a year ago. Capital expenditures, net were CAD 8,180,000 against CAD 14,913,000 a year ago. For the year, the company reported gross revenue of CAD 30,699,000 against CAD 32,534,000 a year ago. Funds from operations were CAD 15,625,000 or CAD 0.15 per diluted share against CAD 18,553,000 or CAD 0.29 per diluted share a year ago. Net income was CAD 3,633,000 or CAD 0.05 per diluted share against CAD 6,960,000 or CAD 0.11 per basic and diluted share a year ago. Capital expenditures, net were CAD 44,697,000 against CAD 50,057,000 a year ago. For the quarter, the company reported production of crude oil of 1,042 bbl against 1,218 bbl a year ago. Natural gas liquids were 14 bbl against 19 bbl a year ago. Natural gas was 297 mmcf against 873 mmcf a year ago. Total daily production was 1,106 boe against 1,383 boe a year ago. For the year, the company reported production of crude oil of 988 bbl against 949 bbl a year ago. Natural gas liquids were 18 bbl against 21 bbl a year ago. Natural gas was 457 mmcf against 749 mmcf a year ago. Total daily production was 1,082 boe against 1,094 boe a year ago. The company plans to drill up to 3 gross exploration wells (2.21 net) and up to 10 gross development wells (7.19 net) in 2013, subject to cash flow from operations. Continued drilling success on the North Waterflood channel extension will drive production growth on an annual basis through 2013 and into 2014. The company would generate a cash flow from operations of approximately CAD 23.0 million for 2013.

Exall Energy Corporation provided financial and operational guidance for the year 2013. The company's Board of Directors has approved an exploration and development expenditures program of $29.4 million for 2013. The 2013 capital budget is expected to be self-financed by funds from operations and will be adjusted from time to time to reflect production and cash flow achievements. The initial 2013 Capital Budget will encompass the continued, focused development of Exall's 66 - 73.5%-owned, Gilwood light sweet crude oil play. At Marten Mountain in Mitsue, Alberta, the company plans to drill 13 gross (9.40 net) wells with 3.0 gross (2.16 net) exploration wells and 10 gross (7.24 net) development wells being drilled on the North 3D Seismic channel. The drilling and completion expenditure component of company’s 2013 capital budget is projected to approximate $25.7 million, with remaining budgeted funds of approximately $3.75 million allocated towards investments in well-site equipment, field facilities, and gathering lines. Based on the 2013 Capital Budget and projected funds from operations, company’s year-end 2013 net debt is estimated at $59 million ($36.0 Million in bank debt plus $23.0 Million in convertible debentures due March 31, 2017) or approximately 2.0 times forecasted 2013 funds from operations. Assuming the median of the forecasted average daily production range and utilizing 2013 pricing assumptions of $85.00 per bbl for Edmonton Par oil, and AECO gas price of CAD 3.39 per gigajoule, the company's funds from operations for 2013 is estimated at $0.44 per basic share or approximately $29.4 million in aggregate, which represents a significant increase of 78%, over projected 2012 funds from operations. Based on the budgeted capital expenditures anticipated within the 2013 Capital Budget, average daily production for fiscal 2013 is projected to range between 1,500 - 1,700 boepd, weighted approximately 97% light sweet crude oil and NGLs and 3% natural gas. This forecasted production range represents a 39% to 57% increase over the company's 2012 average daily production estimate.